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UK consumers may see the cost of online content and apps rise as the country's government looks to close a loophole that had exempted some retailers from having to pay the nation's 20 percent value added tax (VAT).

Previously, companies based in Luxembourg but selling to customers in the UK could charge Luxembourg tax rates on digital purchases, such as apps or other downloads, of between three percent and 15 percent. Now, according to The Guardian, changes to the UK tax regime spurred by last week's budget will mean that companies like Apple and Amazon will have to charge the UK's 20 percent VAT.

The changes were announced by chancellor of the exchequer George Osborne in Thursday's budget and concern the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services," the budget document (PDF) said.

"From 1 January 2015 these services will be taxed in the Member State in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue," it added.

According to The Guardian, previous reports have found that UK was losing more than £1.6bn in VAT on digital services.